The Exxeter Property is comprised of thirteen mineral tenures covering approximately 748.38 hectares and is located within the Abitibi Greenstone Belt (Northwestern Québec, Canada) in the township of Vauguelin, approximately 45km east of Val-d’Or. Exploration to date has identified three exploration targets on the Exxeter Property, which exhibit anomalous values of gold, silver, copper and/or zinc. Future exploration programs will focus on determining whether sedimentary hosted or structurally hosted gold deposits are located on the Exxeter Property.
Refer to Technical Report On the Exxeter Property Val-d’Or Mining Camp, Québec, Canada, dated May 31, 2017 by Abby Peterson, B.Sc., P.Geo., “qualified person” under the terms of National Instrument 43- 101:
The property is located within the Abitibi Greenstone Belt (Northwestern Québec, Canada) in the Township of Vauquelin, approximately 45km east of Val-d’Or. It lies within NTS sheet 32C03. The property’s center point is located at 334,850mE and 5,323,206mN (UTM Zone 18 Nad 83), 15km east of the village of Louvicourt.
Access to the Exxeter Property is by the paved Transcanadian Highway #117, which runs from the city of Montreal to Val-d’Or and onwards. Commercial flights are available daily from Montreal to Val-d’Or. Chemin Chimo passes roughly 500m south of the claims and is maintained year-round for vehicular access from the Highway #117. From Chemin Chimo, a network of logging and other roads offer access to various areas of the claim block.
The Property is characterized by a predominantly flat relief with swamps covering large portions of the northernmost claims adjacent to and west of the Baie de Vauquelin. Vegetation consists predominantly of Boreal forest. Exploration efforts can be carried out year-round, however wetlands/swamps are easier to access in winter months when the ground is frozen.
The 13 claims comprising the Property were acquired through map designation and cover a total of 748.38 hectares. The dispositions are registered to Vorenus Metal Corp. and are held in trust for the beneficial owner: Kode Mineral Exploration Ltd. Through a mineral property option agreement dated March 27th, 2017, New Energy Metals Corp. F.K.A Darien Resource Development Corp. has the option to acquire a 100% interest in the Exxeter Property.
The Exxeter Property is located at the eastern end of the Val-d’Or gold mining camp, approximately 15km northwest of the Grenville Front. The property overlies the Abitibi greenstone belt within the Val d’Or Formation of the Superior Province. The claims are centered on an east-west band of intermediate to felsic volcanic and volcaniclastic rocks with the large Pershing-Manitou granitic intrusive located less than 2km to the north. All the rocks on the property are of Archean age and belong exclusively to the Val d’Or Formation of the Abitibi Sub-Group, however, Diabase dykes of Proterozoic age are known to cut through the rocks in the area although none have been mapped on the property itself. Two regional scale shear zones cut through the southern half of the claim block in an east-west direction. A third local shear cuts the south-western most claim from NW to SE.
Gold mineralization in the area is typically found in quartz veins located proximal to feldspar porphyries associated with shear zones and sulphides such as Pyrite, Arsenopyrite and Pyrrhotite. At the Chimo Mine 3km to the south, gold was formed within the iron formation and subsequently remobilized and re-deposited in one of two ways: in lenses of semi-massive Arsenopyrite and Pyrrhotite adjacent to the iron formation, or in quartz lenses and veinlets within strongly sheared and altered volcanics with disseminated sulphides. While far less common, base metal showings do occur in the area with Silver, Copper and Zinc found in shear zones flooded by silica and carbonate.
The Abitibi region has been extensively explored and mined since the early 20th century with exploration around the Exxeter Property dating back to the 1940’s when positive results from drilling by Chimo Mines Ltd. created interest in the area. Since then, numerous exploration companies, individuals as well as the Québec Government have completed multiple ground and airborne geophysical surveys (electromagnetic, VLF-EM and magnetic), geological mapping and sampling as well as diamond drilling and trenching. The property itself has been the subject of numerous geophysical and geological surveys.
Exploration in 2016 included ground-based geophysical surveys, geological mapping and sampling as well as small-diameter backpack diamond drilling. Subsequently, in the spring of 2017, Darien Resource Development Corp. completed a 20 kilometer line cutting program, a 7.5 line kilometer IP survey and interpretation of the Exxeter property. There has been no advanced exploration or mining performed on this property.
Through a mineral property option agreement (the “Agreement”) dated March 27th, 2017, Darien Resource Development Corp. (the “Optionee”) has the option to acquire a 100% interest in the Exxeter Property, subject to a 1% (one percent) NSR payable to the Optionor and which can be repurchased by the Optionee for $1,000,000.
Under the terms of the Agreement the Optionee must:
(a) Pay to Optionor:
(i) $10,000 in cash on the date of execution of the Agreement (“Effective Date”);
(ii) $25,000 on the first anniversary of the Effective Date;
(iii) $50,000 on the second anniversary of the Effective Date; and
(iv) $250,000 on the third anniversary of the Effective Date.
(b) Issue 300,000 Shares on the date the Shares of the Optionor lists on the Exchange.
(c) Incur Exploration Expenditures on the Property as follows:
(i) $100,000 on or before the first anniversary of the Effective Date;
(ii) $200,000 on or before the second anniversary of the Effective Date; and
(iii) $300,000 on or before the third anniversary of the Effective Date.
The 2016 and 2017 exploration work completed by EFU identified several potential targets for further investigation. The soil sampling program returned multiple samples with anomalous gold-in- soil values of up to 185ppb Au. The soils also had maximum values of 45ppm Cu, 39ppm Ni and 78ppm Zn. These anomalous values warrant further investigation through additional soil sampling on a tightly spaced grid to allow contouring for targeting purposes. The VLF-EM/Mag survey also identified several weak conductors that require follow up. The IP survey identified five (5) separate anomalies, some of which remain open and should be further investigated. It is recommended that the soil and geophysical anomalies should be further investigated. A soil sampling grid with tighter line spacing should be completed in areas with anomalous assay results. Additional IP survey lines (including the extension of IP lines with open anomalies) should also be completed in order to properly investigate the anomalies identified in 2017. A supplemental ground magnetometer survey would tighten line spacing and permit accurate interpretation of the data. A budget for a single phase of exploration that would follow up on the soil and geophysical anomalies is below.
|PROPOSED BUDGET – Phase 1 (C$)|
|Mob/Demob (including transportation and wages)||$3,000|
|Consumables and Supplies||$1,500|
|Forestry Technician Consultation + fees||$500|
|Field Geologist (x2)||600||28||16,800||$36,400|
|Lodging and Meals||600||28||16,800||$23,100|
|Assay and Analyses:||Rate||Units|
|Soil sample Assays||30||500||$15,000|
|Ground Mag Survey||500||27||13,500|
|Contingency Fund (15%)||$32,250|
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Vancouver, British Columbia
Canada V6E 2K3